Redwire's stock has soared over 100% this year driven by excitement around space and drones, but its financials reveal significant dilution and missed revenue targets. The company’s equity ballooned due to stock-based compensation and large share sales, raising concerns for investors as the share count rises and earnings fall short. In contrast, Kratos Defense & Security Solutions presents a stronger case with profitability, raised guidance, a growing backlog, and exposure to a large national security budget increase. Other space-related companies like Rocket Lab, Planet Labs, AST SpaceMobile, and Intuitive Machines also show solid revenue growth and contract wins, offering alternatives for investors wary of dilution risks in Redwire.
